Online shopping has received open-armed user acceptance not because of setting the trend but because of its convenience. Today, merchants dealing with any consumer goods or services have to offer the facility of online purchase to prevent a downfall. However, the increasing number of competitors makes customer retention much more difficult here. It is said that 20% retention accounts for 80% yearly profit of any company. This is why, every now and then, merchants try to improve their customer retention strategy, which often goes in vain. Using mobile apps can remarkably boost customer retention.

Dive in and find out how:


What Is Customer Retention?


Customer Retention Rate - A Sign of Business growth
Customer retention is an important term of marketing that refers to the capability of the company or its products/services to bring customers back after a specific time. For example, if a customer purchases a company, which can be the first and last one – it indicates that the company is incapable of retaining the customer.
On the contrary, after making the first purchase, if the customer goes back to the company to purchase the same or to try other products – it indicates the company’s success in retaining the customers. From a marketing point of view, the higher your customer retention rate is, the better for your business. Roughly, the customer retention rate of 15 or below is considered bad.
While a high customer retention rate signifies good marketing strategies, it sometimes can denote a lack of acquiring new customers. So, being a merchant, you should always try to hold your existing customers and get new customers.

How to calculate Customer retention?

Formula: {(CE-CN)/CS}*100

Where, CE= Number of customers at the end of a specific period, CN= Number of new customers acquired within this period, and CS= Number of customers at the start of the period


Why Is Customer Retention Important for a Business?


Customers are probably the most tangible asset for any business, irrespective of the mathematical standards. Therefore, the moment a business starts gaining repeat customers – it begins its journey towards long-term growth.

No repeat customers or, in other words, only new customers can lead your business towards instant scalability. But repeat customers signify that your business has the spark that can convince your customers to come back. It can be product quality, marketing strategy, support, aesthetics, etc.

Key Factors Behind Customer Retention in Online Business

Also, you need to figure out the factors that bring your users back and work on bettering these. Additionally, a customer retention strategy that brings numerous repeat customers now may not work in the future – so, at times, you need to review the results and update your strategies.

Low customer retention, on the other hand, indicates that your product or service, or marketing strategy needs improvements. Basically, you have to go through several trials to understand the particular/s that can increase your customer retention. However, these particulars can differ based on industry, target market, and other factors.

Though the strategies for customer retention will vary from time to time, one constant factor that can always boost retention is mobile apps. In the next segment, we will be learning how mobile apps account for higher customer retention so that you can use your mobile app in the best possible way.

The probability of selling products to existing customers is 60-70% on average


How Can Mobile Apps Help in Your Customer Retention Strategy?


7 Elements of Mobile Apps That Can Help in Customer Retention Strategy
If you are into eCommerce and do not own a physical store, a mobile app is a must-have for you besides your website.

The main reasons behind this are

  • To free your target audience from searching your store on google
  • To release their struggle of entering confusing URLs
  • To offer all your service in a compact yet premium manner


Your product quality is, no wonder, the key element to bring customers back to your store. But, if most of your sale is online, you have to focus on your customers’ browsing experience. And mobile apps assist in this matter.

Check out: Benefits of Shopify Mobile Apps – See What Your Business is Missing Out Without an App

1. User-centric App Aesthetics – The First Impression Is Ever-Lasting


The main reason behind higher sales and higher customer retention on mobile apps is their aesthetics. It has the maximum potential to convince customers to make a purchase right from the time of installation of the app. To some extent, it creates satisfaction that brings these customers to return to repurchase.

Mobile app aesthetics include:

  1. Onboarding process (the shorter, the better)
  2. Theme and color schemes
  3. Placements of different blocks
  4. Browsing speed and much more


So, by adding mobile apps to your customer retention strategy, you can create a killing first impression on your buyers and convince them to come back.

Amazing fact: Design and layouts alone can raise customer retention by 400%


2. Convenient Usage – A Key To Retain Customers


One of the biggest advantages of mobile apps is their convenient usage. Apps understand user needs in the best way, and for that reason, apps come with advanced features like

  1. Image search
  2. Voice search
  3. Augmented reality
  4. Virtual reality
  5. Numerous product filters
  6. Different sorting options
  7. Push notifications etc.


Mobile apps, from every aspect, enhance the online shopping experience of the customers, which can retain them for a long time.

Push notification alone can bring 820% higher customer retention


3. Rewards – A Power-tool that brings revisits


No matter which industry or product you are dealing with – let’s admit that the Free factor has a magical power to attract customers. Apps allow you to give away the rewards in the most attractive way.

Did you know that 69% of customers choose brands based on the reward points they offer? 


With mobile app graphics, you can announce your special offers more attractively. Suppose you want to run a reward campaign on social sharing, app-only discounts, referral points, or any special discounts. Mobile apps can offer you a handful of elements to custom-design these deals. Not only that, you can schedule notifications so that it reaches the buyers at the right time.

So, if you are struggling with a low customer retention rate, you can fix it with a mobile app.

4. Regular Updates – An Unfailing Method to Stay Relevant


Apps go through constant updates, in simpler words, the app makers constantly research to understand the user preferences. In the eCommerce industry, consumer needs are always changing. They keep searching for the features that buyers are not using anymore and what they are now using instead.

There was a time when consumers used to purchase goods only by seeing their 2D pictures, and with time came 3D and rotational images. Not only that, Augmented reality came so that buyers can virtually try the product before purchasing.

By making updates, the mobile apps make sure that they never lose relevance – as a result, it offers direct help to your customer retention strategy.

You may be interested in 25 KPIs That Measure Performance, Success, And Growth Of Shopify Mobile Apps

5. On-time Support – A Gluey Element to Keep buyers Hooked


When talking about good customer service, support automatically secures its place.

According to 80% of consumers, good service and quality products are the reasons behind their repeat purchases. 


Mobile apps empower the merchants to provide on-time support to the customers with tools like:

  1. Chat support
  2. Search auto-completion
  3. Related searches
  4. Recommended products


The users drop using any online store due to the lack of service, and the app fulfills the gaps to keep the customers glued.

68% of consumers are willing to pay more to the brands that offer good customer service – How cool is that? It takes around 12 good positive customer experiences to heal one bad experience. So, invest in mobile apps and serve your customers in every way.

Check out: A Complete Guide To Turn Your Shopify Store Into A Mobile App

6. Personalization – Valuing Customers to retain them


Buyers today revisit any app mainly due to the personalized features offered there. Right now, mobile apps are well-equipped to cater to this need and include features like

  1. Personalized notifications
  2. Exclusive offers based on past actions
  3. Location-based service etc


All these features make customers feel special and valued by analyzing their past activities on the app. As a result, customers are eager to tap on the new notification, which often leads to a purchase.

Did you know?

Personalization alone is responsible for making 65% of customer retention!


7. Re-engaging Activities – The Compelling Urges To Click


Finally, retention does not come automatically – you need to reach your buyers, communicate with them, and tell them your latest offerings, thereby leading towards a purchase. It is a cyclical process – sometimes, your mail may be straightaway thrown into the trash. Also, customers may just remove your notifications even after being relevant.

Did you know that 75% of users refrain from returning to your app after their first visit?


But you have to keep trying to reach them and get one click, purchase, and future recommendations. Mobile app graphics can help you to reach your buyers. With mobile apps, you can

  1. Create FOMO with attractive and urgent offers
  2. Use features like “Sale ends in” timer and product left counts
  3. Notify your buyers to rate their experience on the app
  4. Ask them to review their purchase in detail
  5. Offer extra points or special discounts to review with photo
  6. Convince them to refer and get a discount for the next purchase
  7. Offer free samples with a countdown timer
  8. Reach them with direct messages and  mails


In short, mobile apps assist you in maximizing your interaction with your customers, which is a direct help in your customer retention strategy.

Read the Success Story of AmorEarth after using MageNative Shopify Mobile App

More Perks of using mobile apps for Higher Customer Retention


Apart from the advantages mentioned above, mobile apps have a lot more to offer that can boost your customer retention strategy which include:

  • Gamification
  • Social interactions
  • App analytics

Quick tips to Rejuvenate your Customer Retention Strategy with a Mobile app


1. Content Marketing


You can prepare helpful content for a video and share it on your social media pages to pull traffic if you are struggling with low retention. Similarly, blogs, catchy one-liners in the form of images/GIFs, reels, etc., can help you achieve high customer retention. Slowly but surely, your retention will grow as short videos, images, etc., are retention magnets. So, you will keep getting more views if your content is compelling enough.

2. Social media marketing


You can also use social media for paid marketing. Your ads on social media have higher chances of getting views and clicks, so you can get more customer retention.

Check out: How Are Shopify Mobile Apps Transforming The eCommerce Landscape?

3. Email marketing


This method helps you to reach your audience directly through emails. In these emails, you can tell them your latest updates, offers, and CTAs in a crisp way so that it can convince your buyers to revisit your app to purchase something.

4. Referral marketing


It is a smart tool to bring customers back with the temptation of points or coupons to customers when they visit your app. However, there will be a condition for them to refer your app to others with a code. Only if someone joins with that referral code your customer will win the point or voucher. It is a very tricky method to increase customer retention unless you make smart use of it.

Improvise Your Customer Retention Strategy with Mobile App


In a nutshell, mobile apps with their features and graphics ensure that your customers get what they are looking for. So, it can be said that a premium experience is mostly responsible for repurchasing, and mobile apps ensure that by every means.
At present, quality products are not enough – you need to market your products and ensure buyers’ convenience while they visit you. Mobile apps can help in both:

  • Apps’ impressive features and graphics keep the customers hooked
  • After the first purchase, apps also try to re-engage the buyers in multiple ways


Altogether, apps are the key to success by bringing higher retention for your business. If you choose Shopify to make your app, you can accelerate your business with higher customer retention in a short time.

About MageNative

MageNative is a leading app building platform that facilitates app creation for business owners regardless of their knowledge of technical nuances involved. At MageNative, we convert ideas into scalable mobile apps instantly and most conveniently.

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